Mithril has acquired private Australian exploration company Sun Minerals which has an exclusive Option to earn up to 100 per cent of the high-grade Copalquin Gold Silver Project in the Sierra Madre Trend, Durango State, western Mexico.
|Copalquin Project location and surrounding major mines|
The mining concessions forming the Copalquin Project are held by Compania Minera Copalquin S.A de C.V., a Mexican domiciled entity (CMC).
Mithril notes that the acquisition remains subject to a number of conditions precedent including completion of due diligence, shareholder approvals and the completion of the capital raising.
As a condition of the acquisition, Mithril also proposes conducting a capital raising by way of an entitlement issue to shareholders on a record date to be determined to raise approximately AU$4.9 million (before costs). Funds raised from the capital raising will be used by Mithril primarily to complete a drill programme at Copalquin and to continue work on the Company’s existing projects.
Sun Minerals is an Australian entity incorporated in 2017 to hold the Option to acquire and explore Copalquin. Mithril shares issued to the shareholders of Sun Minerals (Sun Vendors) at, and subject to completion of, the acquisition will account for 40 per cent of the expanded share capital of Mithril.
In December 2018, after 9 years of production, Coeur Mining Inc. reported Canadian National Instrument 43-101 (NI43-101) (non-JORC) compliant proven and probable reserves of 693,000 oz Au and 50.2 million oz Ag plus significant NI 43-101 (non-JORC) resources remaining at the Palmarejo complex.
The Copalquin Gold Silver Project (6 mineral concessions – 7,005 Ha) covers the entire Copalquin Mining District within the gold-silver trend of the Sierra Madre Occidental mountain range in Durango State, western Mexico.
The gold silver trend is host to numerous gold and silver deposits, with multiple producing mines including; Coeur Mining’s Palmarejo, Agnico Eagles’ Pinos Altos, Goldcorp’s El Suazal Mine (now depleted), First Majestic Silver’s San Dimas mine, Fresnillo’s San Julian and La Cienega mines and the now closed Ocampo mine.